Reynolds America to Close Two Factories (RAI)

Reynolds America Inc. RAI will shut down two of its cigarette plants, while renovating a manufacturing facility in Tennessee. According to the Wall Street Journal, the changes are the latest response by Reynolds (RAI) to rising sales volume for smokeless tobacco. The company has introduced a wide variety of smokeless tobacco products. Reynold’s chairman and Chief Executive Officer Susan Ivey said, “These changes make our companies more efficient in light of the declining U.S. cigarette industry and growth in smokeless tobacco." She further added that consolidation will make it easier to comply with federal regulations. Pursuant to a landmark tobacco law enacted last year, the Food and Drug Administration now regulates the production and marketing of tobacco products.